Xiaomi performed well in Q3, with a car gross margin rising to 17.1%. The next generation of budget models is expected to be produced in the first half of next year. Lei Jun announced that the Xiaomi SU7 Ultra production version will be released on October 29th. The competition in the smartphone market is fierce, but Xiaomi's market share increased to 14% in Q3. The company will focus on developing white goods in the future, aiming to rank among the top three in the domestic air conditioning market and planning to enter Southeast Asia. The gross margin of the AIoT business is steadily increasing, and it is expected to become an important revenue driver in the future
Tesla's delivery volume in Q3 was slightly higher than expected, but the stock price did not rise. However, this time, the profit exceeded expectations, and the market finally recognized it. One of the highlights is that its automotive gross margin has rebounded from the low point in Q2, exceeding expectations to 17.1%. Reasons include economies of scale, lower raw material costs, and Cybertruck's gross margin turning positive for the first time.
Another piece of good news is the time planning for the new generation of affordable models, with production expected to start in the first half of next year. This is also considered good news for domestic car manufacturers, as competition will not intensify in the short term.
Xiaomi, which achieved an automotive gross margin of 15.4% in Q2, is expected to perform well in Q3 as well. Lei Jun announced today that the Xiaomi SU7 Ultra mass production version will be released on October 29th. In September, Bosch accidentally revealed Xiaomi's product planning for cars. One of these models will be released next year, with the other being an SUV, which the market is more eagerly anticipating.
In the smartphone sector, competition is fierce, but with Huawei restricted, the current landscape remains stable. Xiaomi's market share increased to 14% in 3Q, slightly down from 15% in 2Q, but continues to perform well overseas.
In addition to automobiles, another focus for the company in the future is white goods. The current goal is to rank among the top three in the domestic air conditioning market and to bring white goods to Southeast Asia next year.
In recent years, the company's AIoT business has steadily improved its gross margin, driven by an increase in high-margin products, cost synergies between smartphones and AIoT, and higher sales from overseas. This trend is expected to continue, becoming an important revenue driver while continuing to promote Xiaomi's "smartphone + AIoT + smart home" ecosystem.
If the company's smartphone profit margin recovers next year, the second model and the success of white goods all come together, there may still be room for further valuation adjustments next year